In my opinion, the low point of the reaction cycle in gold occurred on
April 4th. It is amazing how weak the US dollar became as the Iraq
situation slowed down. Each time the Blue Coats at the Exchange
Stabilization Fund (ESF) come to the rescue they seem to bump into
offerings of such significance that they are forced to turn back. I hear
there are huge offerings out of Asia in the market. We may well be in for a
rough ride in the dollar well into May.
I have been informed that the author of the Malaysian Gold Dinar, now
Malaysian Premier and Finance Minister, Dato Seri Dr. Mahathir Mohamad,
will serve as the Chairman of the Organization of Islamic States for the
next three years. From a most reliable source, it is said that gold
remonetization out of Malaysia is still on line to occur this year in the
form of the Malaysian Gold Dinar.
Please note that many of the leading gold shares are making good technical
signals for higher prices, probably sooner than later. Get ready, get set,
because this week, in my opinion, we will be in Go Mode for $358 as the
first objective in gold's challenge of $400 one more time.
For the charts that accompany this summary please click the jsmineset link
at the bottom of this page.
And now I'd like to bring your attention to this interview with John Embry
that appeared in Canada's National Post which is probably one of the only
newspapers in North America that covers gold in an objective and competent
fashion.
There are few people in the gold sector that speak with such authority and
put their own money, that of their clients and their firm's money and
reputation on the line based on sound, in-depth analysis. Embry, who
recently joined Sprott Asset Management in Toronto after leaving the Royal
Bank of Canada where he was Vice President of Equities, is a friend to gold
and not afraid to speak in its support. Well done John!
I'm sending you the first part of the National Post article and the balance
is available at jsmineset.
Jim Sinclair
Saturday, April 12, 2003
John Embry has been following gold for more than 30 years, so he's not
overly concerned on this day at Reds Bistro just off Bay Street when Lunch
Money notes that the bullion price has dipped below US$320 an ounce from
near US$390 earlier in the year. "The volatility in this area never fails
to amaze me," he says as we settle into a booth in the airy upstairs dining
room, a favourite luncheon spot of his -- and ours, too.
"I thought it would correct back around US$350," he concedes. "But we're in
a gold bull market and we've seen the first leg and this is the first
correction. We're certainly getting rid of the Johnny-come-latelys and the
nervous Nellies."
At 62 and with almost 40 years in the money-management business, this Embry
is no Johnny-come-lately. Unless, that is, we're talking about his
surprising late-career move from Royal Bank of Canada, where as
vice-president of equities he earned a sterling reputation for running the
top gold fund, across the Street to Sprott Asset Management Inc., where he
was recruited in March by chairman and CEO Eric Sprott to become president
of the company and manager of its gold and precious minerals fund.
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